Clontarf Energy Plc · LSE:CLON
Clontarf Energy — Shareholder Meeting (September 2024)
19 slides from Clontarf Energy's shareholder meeting presentation, September 2024
Slide 1: Europe needs offtake of pure Bolivian Lithium
Europe needs offtake of pure Bolivian Lithium Bolivia needs Lithium exports 1
Slide 2: Europe's supplies of Critical Minerals are vulnerable
Europe’s supplies of Critical Minerals are vulnerable - especially in Lithium, Cobalt and Rare Earths ● China’s strategy to dominate Critical Minerals’ processing, & mining has succeeded unopposed for 25 years. This now extends into EVs. ● Japan’s pre-2010 dominance of Lithium-ion batteries is over.
Slide 3: We need a "Team Europe" effort
We need a “Team Europe” effort - No one company or country can grapple with China and NAFTA ● Need to combine operating skills, clean technology, with distribution & financing – including Risk Rating & bank support. ● Competing in all links of the value chain. ● Operators need EU institutional cover
Slide 4: Finance is best linked to offtake
Finance is best linked to offtake. - Bolivia is not currently bankable ● Many supplier states (including Bolivia) have insufficient financial standing to constitute reliable counter-parties. ● But market fundamentals for long-term offtake contracts are excellent: ● Demand for Lithium carbonate equiv
Slide 5: Challenges include infrastructure, State control, and evaporation techniques
Challenges include infrastructure, State control, and evaporation techniques ● Financial investors worry about up-front costs, and how majority YLB owned JVs will work. ● EU Green policies must embrace clean separation and processing, as opposed to dirty hard rock mining. ● Direct Lithium Extraction
Slide 6: Traditional Water Evaporation Processing
Traditional Water Evaporation Processing 6
Slide 7: Direct Lithium Extraction Process Diagram
Direct Lithium Extraction Process Diagram 7
Slide 8: YLB call for expressions of interest on evaporites' technology & development
YLB convocatoria, or call for expressions of interest on evaporites’ technology & development: ● 21 companies, including 7 EU (+ 2 Russian, CH, GB). ● Phase 4: detailed assessment by YLB Commission of technology maturity and financial capacity. ● Phase 5: negotiation & signing convenios – initially
Slide 9: Bolivia adjusts the convocatoria in real time
Bolivia deftly adjusts the convocatoria in real time, to focus on evaporites’ technology & development: ● Stream 1 for operating DLE plants (3 Chinese companies, and 1 Italian water purification company). Probably first to sign. ● Stream 2 for DLE plants ready for production testing in 2024/5. Likel
Slide 10: Clontarf proposes plants on different salares
Clontarf proposes 5 plants on different salares ● Each salar has different chemistry, requiring bespoke designs. ● Initial plant designed at 500 tonnes / year of LCE. ● Skid-mounted modular plants on concrete slabs, with infrastructure. ● Subsequent plants likely to be 3,500 to 14,500 tonnes / year
Slide 11: Contractual & fiscal terms have yet to be negotiated
Contractual & fiscal terms have yet to be negotiated ● Bolivia is a mining country with 3% royalties & profits taxes. ● NB: Petroleum Contracts were production sharing until 2006, when they were migrated to service contracts – resulting in reduced resource addition, leading to export gas shortages.
Slide 12: Stable tax systems must be clear, fair & efficient
Stable tax systems must be clear, fair & efficient - working for all stakeholders (subject to proposed Lithium law fine-tuning) ● Local communities must benefit directly (via circa 10% royalty + 2.5% ESG) for Lithium derivatives (other Mg, K, etc. minerals at 3%). ● Local plants will likely operate
Slide 13: Effective Royalties likely to be circa 15.5%
Effective Royalties likely to be circa 15.5% - similar to oil or diamonds, rather than mining ● 10% royalty on Lithium derivatives (mainly to producing regions). ● 2.5% ESG levy for local communities. ● 1% for non-producing departments. ● 1% for the national Treasury. ● 1% for the new regulator. Thi
Slide 14: Europe needs secure, long-term supply chains
Europe needs secure, long-term supply chains: deal ● All markets are important, but the automotive OEM market is critical. ● “Team Europe Commercialisation JV” to deal with YLB in a Commercialisation arrangement to protect EU interests. ● Political & economic support by the EU, Member States entitie
Slide 15: Fits the EU Raw Materials Act as a "Strategic Project"
This initiative fits the EU Raw Materials Act classification as a “Strategic Project”. ● “EU Commercialisation JVs” to balance national exporters including YLB. ● Helps exporters find, develop & distribute high-quality, clean materials. ● EU sovereign loan funds enable essential infrastructure with
Slide 16: Partners, not bosses or employers
Partners, not bosses or employers ● Communities welcome investment, but we must earn social licences to operate. ● Provide mixed commercial and tourist infrastructure in a win-win; operators need infrastructure to extract lithium. Local communities get jobs, training, value-added, and can operate &
Slide 17: And Bolivia thereby joins the Lithium export boom
And Bolivia thereby joins the Lithium export boom ● South America’s Lithium triangle offers the cleanest, lowest cost, and highest purity potential source of battery-grade Lithium. ● Europe wants clean, as well as secure raw materials. ● But an undeveloped resource is worthless to Bolivia, and clean
Slide 18: Investors need EU support with finance and legal title
Investors need EU support with finance and legal title ● Without EU support, there is only weak legal title for private companies in Bolivia, since courts are sometimes not independent of the State. ● Investors need effective remedies to reduce financing costs. ● Junior developers and R+D innovators
Slide 19: We need ambitious policies to protect Europe's economy
We need ambitious policies to protect Europe’s economy ● Cleanly extracting and refining lithium products. ● Delivering Green Direct Lithium Extraction technology & power. ● Building Lithium extraction and refining pilot plants. ● Industrialization of Lithium products in Europe. ● Value added in all
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